Federal Income Tax Calculation - Biweekly Payroll Period

Effective January, 2014

To determine the amount of wages subject to federal tax, you must first add any taxable fringe benefits and taxable employer-paid deductions to your gross pay amount. You can then subtract $151.90 from the total biweekly taxable gross pay for each withholding allowance claimed.

Percentage Method – Value of One Withholding Allowance

In 2014, the value of one withholding allowance for a Biweekly Payroll Period is $151.90.

The 2014 withholding adjustment for nonresident aliens is $86.50 for biweekly tax calculation purposes only. This amount is added to the wage calculation solely for the purpose of calculating income tax withholding on the wages. Note that nonresident alien students from India are not subject to this procedure.